globalizatinzx
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Name: Mohammad Al-DroubiHussein Al-Debs
To: Mr. Mohammad Ismail
Subject: “Global Entrepreneurship”
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THEORIES & CONCEPT
OF ENTREPRENEURSHIP
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THEORIES & CONCEPTS OFENTREPRENERSHIP
Session Objectives
At the end of the session, studentsshould be able to:
• understand the various theories and
concets on entrereneurshi• have a deeer understandin! of the
disciline of entrereneurshi
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THE E!O"TION OF
ENTREPRENERSHIP THEOR#
Definition of an "ntrereneur :
• # An entrereneur is a erson $hounderta%es to do a job & 'ichard(antillon )*+. he term entrereneuris a /rench $ord first coined b0 'ichard
(antillon.• In Mala0sia the term #usaha$an& is
used for entrereneur.
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THE E!O"TION OF
ENTREPRENERSHIP THEOR#
Definition of "ntrereneurshi:
• "ntrereneurshi involves not onl0 therocess that leads to the settin! u of abusiness entit0 but also the e1ansionand develoment of an on !oin!
concern.he stud0 of entrereneurshiis concerned $ith the entrereneurialbehavior, the d0namics of business setu and e1ansion and develoment.
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THE E!O"TION OF
ENTREPRENERSHIP THEOR#
• Adam Smith )*++2 - An entrereneur is
a erson $ho acts as a!ent intransformin! demand into sul0.
• 3ean 4abtiste Sa0 )*567 - An
entrereneur is a erson $ho shiftsresources from an area of lo$
roductivit0 to hi!h roductivit0.
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THE E!O"TION OFENTREPRENERSHIP THEOR#
• 3ohn Stuart Mill )*585 - An entrereneur is a
rime mover in the rivate enterrise.he
entrereneur is the fourth factor of roduction
after land ,labor and caital.
• (arl Men!er )*5+* - he entrereneur acts
as an economic a!ent $ho transformsresources into roducts and services.he
entrereneur transforms and !ives added
value.
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THE E!O"TION OFENTREPRENERSHIP THEOR#
• 3oseh Alo0sius Schumeter )*978 - An
entrereneur is an innovator. he econom0moves throu!h leas and bounds and the
rime mover is the entrereneur throu!h the
rocess of creative destruction.
• Alfred Marshall )*972 - he rocess ofentrereneurshi or business develoment is
incremental or evolutionar0 . It evolves from
sole rorietorshi to a ublic coman0.
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THE E!O"TION OFENTREPRENERSHIP THEOR#
• Ibnu haldun )Abdul 'ahman Mohamed
haldun - he entrereneur is seen as a%no$led!eable individual and is instrumental
in the develoment of a cit0-state $here
enterrise $ill emer!e.
• David Mc(lelland - he entrereneur is aerson $ith a hi!h need for achievement.
his need for achievement is directl0 related
to the rocess of entrereneurshi.
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$EFINITION OF ENTREPRENERSHIP
It is more than mere creation of business
"ntrereneurshi is a rocess of innovationand ne$ venture creation throu!h four majordimensions ; individual, or!ani
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$EFINITION OF ENTREPRENERS
• /unctional definition of entrereneursoffers the follo$in! definition:
• "ntrereneurs are individuals $ho activel0
form or lead their o$n business andnurture them for !ro$th and roserit0.
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THE I%PORTNCE OF ENTREPRENERSHIP TO
%"#SIN ECONO%#
*. "ntrerenuershi is the s0mbol of business
steadfastness and achievement. "ntrereneurialrevolution is critical to economic !ro$th.
"ntrereneurshi ma0 affect our future in man0
$a0s:
a. Innovative creation of oortunit0
"1amle: =ortable hones lin%ed to fa1es and
lato $ill turns cars, train, and airort terminal
into offices.
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THE I%PORTNCE OF ENTREPRENERSHIP TO%"#SIN ECONO%#
d. "ntrereneurshi not onl0 affect our livesthrou!h innovation but reresent the $or%in!
future for man0 of us due to la0s off b0 lar!eor!ani
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f. he entrereneurial SMIs rovide services that the lar!e
cororation has ne!lected or lac% of econom0 of scale
for the lar!e cororation to serve.
!. (ontribution of SMIs to Mala0sian "conom0 -
In Mala0sia the SMIs emlo0ed 96> of the total labor
force in manufacturin! sector and contributed to about
?2> of total value added in the sector.
THE I%PORTNCE OF ENTREPRENERSHIP TO %"#SIN
ECONO%#
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IS"%IC ENTREPRENERSHIPIS@AMI( "'"='""B'SHI= /O(BS O
"ICH ='I(I=@"S O/ HOBCHS :-*. "ntrereneurshi is an inte!ral arts of Islamic reli!ion.
?. 40 virtue of human nature , the Moslem entrereneurs are %halifahE andhave the reonsibilities develo roserit0 and sees business as art of
ibadah or !ood deed.
7. Motivation ; success in Islam is not merel0 measured b0 the end result but
also the $a0 and means of achievin! them.
8. Ibadah ; business activit0 is art of ibadah or #!ood deed&
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. =osition of "ntrereneurshi and business in Islam ; Islam
encoura!ed its ummah to venture into business . =rohet Muhammad
S.A.F e1ounded that 9 out *6 source of ri
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+. Cuidin! =rinciles of Islamic "ntrereneurshi is b0 the al-uran and
al-Hadith
5. "ntrereneurial "thics based on e1emlar0 conducts of =rohet
Muhammad S.A.F
IS"%IC ENTREPRENERSHIP
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IS"%IC ENTREPRENERSHIP S SINTEGR" PRT OF THE RE"IGION
Islam is a comlete $a0 of life. here is nosearation bet$een business and reli!ion.
Islam has its o$n entrereneurshi culture
and !uidin! rinciles based on the Al-uranand Hadith to !uide business oeration .
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H%N NTRE
(The )itrah o) human bein*+
40 virtue of the human nature, the erson mustfirstl0 be a Muslim, then an entrereneur. He
has the resonsibilit0 to erform ‘ibadah’ and be
a ‘khalifah’ . Muslim entrereneur should search
for CodEs blessin!s above all other factors. AMuslim entrereneur erform business not
solel0 for rofit, but above all, to fulfill the
‘fardhu kifayah’ .
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%OTI!TION
• Most entrereneurs have the desire to
achieve successful business venture.• he successful ath and means for
achievin! success for Muslim
entrereneurs are uniGue.
• Success in Islam is not merel0measured b0 the end result, but also
the means and $a0s of achievin! them.
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SCCESS FOR%" ,# "-.RT,I
• Halal ; livelihood that are in accordance to $hat isbein! outlined b0 Allah SF and s0ariah.
• anaah ; be leased and than%ful $ith oneEs earnin!• aufiG - As%in! for the blessin! of Allah in
roortion to oneEs e1ectation• SaEadah- Siritual hainess• 3annah ; Forldl0 success should act as the brid!e to the
ultimate success in the life hereafter )aradise.
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@evel of no$led!e
@evel of Taubat or repentence @evel of emtation @evel of Obstacles @evel of Motivation
@evel of Handica @evel of =raise and han%fulness
SE!EN STEPS TO/R$S SCCESS IN "IFECCOR$ING TO I%% "-GH0"I
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POSSESSION OF /E"TH IS ""O/E$ ,SE$
ON THE FO""O/ING PRINCIP"ES:-
• Allah s.$.t is the absolute o$ner of$ealth• Allah created $ealth in
abundance and sufficient for all
• Fealth is created for man%ind• Fealth is entrusted to man%ind
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I,$H
In Islam, involvin! in businessis art of ibadah throu!h the
fulfilment of fardhu kifayah.
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POSITION OF ,SINESS N$ ENTREPRENERIS"%IC ENTREPRENERSHIP %O$E"
Islam Propose1
(,usiness !enture+
llah Prepare1
(Fa2ilities+
Islam Outline1(Rules an1 Re*ulation)
llah Promise1
(Re3ar1+
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IS"%IC ECONO%IC S#STE%
Islamic "ntrereneurshi should
be in the frame$or% of Islamic
"conomic S0stem and shouldassist in establishin! the Islamic
"conomic S0stem
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GI$ING PRINCIP"ES OF IS"%IC
ENTREPRENERSHIP
Cuidelines for Islamic"ntrereneurshi and business
activities are $ide and
comrehensive based on Al-
uran and Al-Hadith.
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%S"I% ENTREPRENERSHIP ETHICS o revent la
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THE ETHIC" ,EH!IOR OF %S"I%
ENTREPRENERSHIP
o avoid malicious behavior o avoid sGuanderin!
o avoid stin!iness o a0 alms (zakat) rust$orth0
o ra0 consistentl0 Tawakkal =atience Qana’ah
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E4E%P"R# CON$CTS OF GOO$ %S"I%ENTREPRENERS $RING THE PROPHET
%H%%$ S''/ REIGN
4usiness is secondar0 $hen bein! calledfor other form of crusade Avoid usin! influence for self interest
Afraid of accumulated $ealth @eadershi Gualities in all asects =ractice moderate $a0 of life
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EN$ OF %O$"E 5
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